Zero per cent deals at their 'most competitive'

The introduction of two new credit card deals offering 13 months of zero per cent on balance transfers is bringing in a period of competitive deals for customers, one analyst has claimed.

Both Barclaycard and Capital One have launched new credit card deals that will see consumers pay zero per cent on balance transfers until July 1st 2008.

Stuart Glendinning, managing director of price comparison website moneysupermarket.com, said: "When people consider there is also the Virgin deal offering zero per cent on balance transfers for 13 months, we are looking at the most competitive range of deals available since the introduction of balance transfer fees nearly three years ago."

He added that in the past there had been isolated deals, even a Capital One deal offering 18 months interest free, but that the current range of offers showed credit card providers involved in fierce competition.

Credit card customers wishing to switch should be aware that the switch will not be free. Most providers have followed Barclaycard’s 2004 introduction of a balance transfer fee of around three per cent.

Consumers also need to be aware of the order in which they will be repaying their debts, with many providers requiring them to repay the lowest interest debt first while the debt accruing higher rates of interest is paid off last.